welcome back. i'm dominic chu. financials leading by a wide margin. morgan stanley, b of an up. citizens financial, lincoln national, all these early gains, the sector positive year to date and down fractionally on the month. that does it for "squawk on the street." let's send it to carl and the gang for "squawk alley." thanks a lot. it's 8:00 a.m. at uber headquarters in san francisco. "squawk alley" is live. ♪ ♪

welcome to "squawk alley" for ay. jon is back and sarah. a rally under way on wall street. the fresh all-time highs. not far from 6,000. the markets seeing the biggest gains in more than a month as france gets ready for a runoff against macron and le pen. let's get over to michelle live in paris with the latest. hi, michelle. >> reporter: hi there, carl. the cover calls it macron sensation. and he has caused a sensation across european markets. rocketing higher than 4%. the german dax hitting new intraday highs and london and spain also making big moves.

the reason the markets are acting this way? macron is very pro eu, very pro euro and hence the congratulations rolling in to him from other european leaders. the european commission, angela merkel's chief of staff in germany, the german foreign minister. the opponent le pen faces hurdles. other opponents endorsed macron and the polls show and were rite yesterday and the markets are convinced about the second round polls to get shellacked by macron. he would receive more than 60% last they saw. her 35%. so consequential of the future of europe. she was anti-eu and euro. that's why this is such a relief. back the you. >> i was at the imf world bank meetings last week and people clearly were worried and

breathing a sigh of relief this morning that italy would be the next domino. this is within you report on closely. are there takeaways from what happened in france? for italy. >> it's hard to say because the level of discontent with the euro in italy is much higher. one of the countries with the highest level of people who say they're not supportive of the euro but asking if we're seeing less of a swing of extremism, it's possible. france is a pretty independent place. and we'll have to see how those elections go this coming summer. >> michelle, we'll be coming back to you later on today for more. for more on the global market reaction to that election, we are joined by the fidelity investments director, ben steel's -- a pleasure to have you both. good morning. so is this debate this morning, is this today's action an unwind of short-term hedge trades or is

there a legitimate backstop to nationalism? >> there's a lot of relief in the market. just that the polls were correct which is a big change of our own election last november. it gives the markets kchd that macron is going to win big on may 7th. up 27 percentage points in the poll and look beyond that because the man will then have to govern. a brand new political party. he's unlikely to be able to govern without support from the other parties who have very different political and policy objectives. >> even with all the surprises that we have seen in this election so far, you think he has -- we can reasonably assume he will win on the 7th? >> i think we can make that reasonable assumption. the big question is whether he can actually deliver on a cohesive agenda. our own president here in the united states has had a tough time getting his own party on board. >> do you think that had to do, a factor in the french election, the trump factor? people thought the waive of

populism leading to a bigger surge for le pen and maybe looking at the last 100 days they thought we don't want this route. >> le pen performed up to expectations which were pretty terrifying for the markets a year ago. i think we should not fail to remember that macron was up against a conservative candidate mortally wounded with a finance scandal and if he didn't have that tail wind behind his back he might have been in a much less accommodative position. >> the market reaction to geo politics is muted at best up to this point at least. this appears to be a positive reaction to a geopolitical event. why does this matter more than north korea and what does it tell us about the market attention on europe? >> i don't know if it matters

more but it's the most immediate actionable event to take place and people thought the markets complacent and other than the french german bond spread wasn't anything priced in in terms of tail event but for six, seven weeks the s&p has gone nowhere and in a way it was pricing the tail risk by not doing what it otherwise would have been done which is go up. it's sort of depends on how you look at it but, you know, there are always tail risks. there's always a 1 in 3 chance the market goes down 10% and a 1 in 5 chance to go don 20% and yet over the long term, the stock market up 10% a year, 70% of the time. so there's always a wall of worry to be climbed and not to understate the actual geopolitical risk we have right now and nice to get it out of the way. you know? as your other guest said, the sort of victory or the real win here is for the french polls

which got it right unlike in the uk and the u.s. so if the polls are any indication, it will be about 60-40 macron in the runoff. that will be -- >> you're in -- >> -- a good thing. yep? >> you have it all clear in short to medium term? >> i think the biggest issue other than an exogonist shock is the market is ahead of the game here. the pe ratio of the s&p jumped 2.5 points in a justified expectation that earnings were going to rebound. in my view, that earnings rebound less to do with what's coming out of washington in terms of fiscal policy and the fact of an upturn and europe is very much part of that and why i'm bullish on europe as a stock market. so, i think the biggest risk fundamentally is that the market needs to grow into its new pe

and it's doing that but i do think that that is a little bit of a head wind going forward. it just means the market goes up less than it otherwise would and i see opportunities overseas than in the u.s. in terms of upside potential. >> ben, what strikes me is how wrong people have been about the euro. investors, analysts, policymakers. if you go back over ten years and count how many times the euro would fail up or fail, you can add ireland and cyprus, the banking crisis there, the plex it and the spillover effect on the euro zone and now the french election as a rev ren rum. how many people have gotten this wrong? do you think that, you know, it says something about the future of europe that investors can't key into? >> there's a bull wind behind the euro right now. a lot of things can go wrong. we haven't cleaned up greece by any stretch of the imagination. we will have italian elections

by about this time next year. the opposition party and somewhat incohesive is not pro europe. the wider political context is pretty ugly. globalization is in refrenchment from 2011, 2015. we actually saw a decline. only four-year period of which we have seen this since the end of the second world war. capital flows down. trade barriers up. >> so it's not all clear. >> tail winds that euro's sailing into right now. >> that's a good discussion, good way to start the hour. gentlemen, thank you. and sticking with the morning's rally, let's go to bob pisani on the floor. >> rally's holding up well. even in france, there are still close to 4%, not quite at the highs. the sectors, banks are leading although had a great rally up until about 10:00 and come off the highs. industrials and materials, there's the reflation trade.

gold to the downside. got a lot of new highs today. over 200 at the new york stock exchange. we had first the bank report earnings. industrials are reporting. numbers are good. illinois tool works this morning. historic high for them. honeywell reported on friday. good numbers. stanley, black & decker also talked about earnings full year. being better than expected. 3m 52-week high. earnings so far pretty good. banks and industrials. getting more. techs hit new highs today. facebook, microsoft, alphabet, adobe, kla-tencor, we're seeing the new highs. as of the moment, the vix collapsed back down again and an inverted "u" there to 11 or so. that's where we were in the early part of march. where are we in terms of market risk? you heard earlier. the markets saying that

geopolitical risks are lower and north korea is a major issue out there. weaker economic data is biggest risk to the market. stocks, valuations, moderate. delayed fiscal reforms and moderate there. guys, back to you. >> bob, talk to you in a bit. when we come back, how travis kalanick tried to pull a fast one. a morning of jack ma saying one day robots may make many ceos obsolete. plus more on the morning rally and the fast moving situation in france. a used car,

♪ we are tracking this rally on wall street for you. eight dow stocks hitting 52-weeks highs right now. disney, home depot, mcdonald's, walmart and microsoft. best performing dow stocks are goldman sacks and jpmorgan. >> "the new york times" out with an in-depth look at travis kalanick. the leadership style, past ventures and never-before reported detail of an encounter with apple c 0e tim cook that almost got the app banned from the app store. we are joining by mike isaac and

cara swisher. good morning to you both. mike, quite a story. the thrust here seems to be not just regulators, competitors and drivers that he's willing to flop. peers and partners in silicon valley. how do you think it affected the relationship between apple and uber? did it play at all in apple's decision to invest in uber's competitor? >> that's a good question. i think the relationship between the two companies is sort of difficult already because on the one hand, you know, a lot of iphone users really and appreciate using uber and apple is all about user experience and they really embraced uber from the early days there. if you're a company like uber willing to sort of break rules and flaunt violations of apple's terms of service or regulators, what does apple do in a situation like that?

ultimately what happened was tim cook called travis kalanick into the office for a public drubbing and could have gone a very different way. >> cara, your take on this. seems like a new wrinkle in this. it seems that travis is willing to do whatever it took to advance uber and running afoul of apple could have really, really damaged them a different way. >> i think he asked for forgiveness later. i think that's his whole policy. does something awful and says i'm so sorry and please forgive me instead of asking permission. what i've found interesting is why they didn't go to apple with serious problems as mike outlined in china with fraud and very legitimate issues, why they didn't work with apple to deal with that. instead, a work around. i don't know if apple didn't cooperate or anything else but the typical thing is shoot first and ask questions later and i

think mike outlined clearly why that was. he's been like this the whole career and did a profile similar behaviors throughout his career to do this and so it's not a surprise he's done this. i think more disturbing is the use of data of slice and how they were using different user data. again, another -- not unusual for silicon valley but another showing that privacy doesn't matter to most of these companies. >> mike, it is an amazing read. everybody should look at it today. >> thank you. >> whether it's an issue with apple, the new documents filed with the way mo dispute, the hr stuff, do you think there is a limit to the number of plates that he can spin as he tries to keep this company going? >> that's a good -- well, i mean, you know, if you remember what, two weeks ago, uber told bloomberg its numbers were great. posted some financial numbers for the first time ever and, you

know, one of the things they maintained is, look, our revenues are still going strong and the business is doing fine so muchas much as you may not l the ceo over tactics, it doesn't mean it's not working for them and working pretty well. they haven't reached that breaking point. i'm not sure if they have or will just because it's ingrained into how people get around but i guess we'll see. >> cara, clearly uber is the one in the cross hairs in this story and i wonder if apple did everything it possibly could have to protect users' privacy. clearly mike painted a picture of tim cook being tough in that interaction. but should they have pulled the app from the app store? >> i'm not so sure that's what they do. maybe they should have made an example of uber. it's an important app and most used one so i think there's lots of ways to handle this and maybe they should have to give them a lesson but i don't know if it's

tim's job to like train travis not to misbehave. probably wasn't not that big of a vie ligs aolation and what i mike was saying when does it stop? people can do things as long as they turn in good earnings or make money for the people and so this is a very ill dull nlg group of largely men in misbehave and that these things pile up and as long as the results and money are there, they're allowed to do these things. you know, i sound like a parent. like this is getting kind of ridiculous but i mean mike knows well the culture around that and if you -- many, many sins can be covered up if you bring back money to the venture capitalists. >> mike, we did get a statement of uber and ask you to respond. here's the statement. quote, we absolutely do not track individual users or their location. if their eve deleted the app.

"the new york times" story notes, this is a typical way to prevent fraudsters from loading uber on to a phone and wiping it over and over again. similar techniques are also used for detecting and blocking suspicious log-ins to protect user accounts, being able to recognize known bad actors when they try to get back on our network is an important security measure for both uber and our users. mike, interesting the way they're painting this as trying to protect users. >> yeah. so, this is pretty technical details but what we're both in agreement, both my story as well as uber, essentially it's an anti-fraud mechanism and uber sort of went around how you're supposed to do it through apple. and took a shortcut there. eventually things sort of changed in how apple allows companies to do fingerprinting and they're able to use these different anti-fraud techniques

but initially in 2015 when this happened what they were doing is breaking the rules. we're in agreement and not location tracking and how some people misread it. but they sort of got their act together after that meeting. >> yeah. i mean, if it was all so much on the up and up, though, makes you wonder why they didn't disclose it and hide it from apple. jack ma warns about potential job disruptions and pain caused by technology. speaking today at a china entrepreneur club event, alibaba's chief executive chairman said we might see a robot ceo on the cover of "time." in the coming 30 years, the world's pain much more than happiness because there are many more problems that we have come across. cara, i think it was last year at your conference, i was talking to gene lu of didi and

she said they were not planning to use autonomous society because chinese society needs drivers, people at work driving cars. i don't know if that holds up. >> no. >> how might it play out? you say no. how might this play out over the next, say, five, ten years? >> i think this is a big issue of what happens to jobs. not just driving but all kinds of things. accountants, lawyers, ceos. maybe they wouldn't misbehave so much. these issues around ai and jobs and robots are critical. i mean, on one side, the politicians are discussing coal mining when it's real jobs that, you know, not that coal mining isn't real jobs but they're lost jobs but these are jobs currently held by millions and millions of citizens across the country and the world and the question is, how many more could be lost through ai and what do we do about it and robots and automation, warehouse

automation? it's not just coal miners in trouble and figure out how to get them great jobs but how does everybody else do and maybe reporters some day and maybe that's a good thing. >> mike, an attempt to draw a thread between the two ostories. innovation at all costs. breaking rules and bones and same mind-set of ai. it will be good. enno vags always is. might that idea hit a wall? >> i agree with cara. i think there's real tension that this whole idea of ai is getting at. where will the jobs go? there's an idea that, you know, progress towards artificial intelligence and a true artificial intelligence is inevitable so we should kind of prepare for that. it's more a question of when and not if. i think honestly i think it is going to come and obviously it's going to come some point and a

matter of how it comes and so you look at companies of facebook where they're using ai to detect hate speech or threats or possibly threats and so i think i'm of the belief it will happen and there's obviously ai is only growing as an emerging field. it is just going to be a win and what people, jobs they displace. >> yeah. absolutely. i mean, samali altman is aware it. me repetitive job that doesn't have an emotional connection is finished. like, think about that. like that's a lot of jobs. so you have to start thinking hard and who has the spoernl responsibility to deal with it? that's the interesting question as silicone valley tries to grow up and doing a terrifically bad job at it. >> i wonder if we have ai

nonproliferation agreements 20, 30 years from now. thank you for joining us. >> thanks. >> thanks for having us. >> good thing we are all so emotional about our job. still to come, not just wall street in party mode. stocks are surging in france. look at the cac up more than 4%. investors betting centrist macron will beat le pen come the may 7th runoff. the german dax at a record high. we'll break it down for you in the european close. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

what a day it's been overseas. closing down to the close in the uk and europe. dom? >> so, carl, to say the european stocks are rallying is a huge understatement. you can see here, all we see is green across the board. they're soaring as markets across the atlantic betting on a macron victory in france's upcoming presidential election runoff on may 7th. now, the paris cac 40 rising to 59-year high on track right now

for its best one-day performance since august of 2012. the ftse in italy, spain, each poised for biggest one-day gains since march of last year. also, the german dax hits an all-time intraday high today aside, again, from the french presidential election. the index getting a lift from some of the data coming out of germany showing business sentiment is rising to highs we haven't seen since july 2011. london's ftse 100 rallying again today. no surprise here the french banks, some of the biggest winners. all surging today. they're leading the european banking sector. now, the stock 600 banks index, up about 8% year to date and up 5% today alone. taking a look at the macro picture, the spread. which had been widening amid

uncertainty of the french elections, german 10-year, narrowing to the tightest gaps since december. the euro also jumping to a five-month high. the first time the banks had really since its asset purchase program scaled off a little bit here. finally, moving on to the m and a side of things. axo with a new record high. ppi sweetening the bid to buy the paint company. akzo says it will quote/unquote carefully review and consider the company's proposal. a lot going on here, of course. green across the board, carl. back over to you. >> a lot of news. thank you. when we come back, a street apple analyst with a call to worry some investors. "squawk alley" continues in a moment.

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good morning once again, everyo everyone. i'm sue herrera. firefighters battling a fire at an apartment building in maryland at this hour.

plumes of heavy, black smoke can be seen for miles. so far, luckily, no reports of injuries at this time. israel observing the holocaust remembrance day. the country coming a stand still earlier for two minutes as people stopped in their tracks to remember the holocaust 6 million jewish victims. u.s. gasoline prices rising three cents over two weeks. survey finding the average national price for unleaded is $2.46 a gallon, 28 cents more expensive than a year ago. and president trump making a long distance call to the international space station. >> today commander witson, you have broken the record for the most photoal time spent in space by an american astronaut, 534 days and counting. >> the president congratulating commander peggy whitson for the feat. the 57-year-old naught is a bio

chemist twice commanded the space station. the current ride is expected to last another five months. an amazing feat. that's the news this hour. sara, back to you. >> thumbs up, peggy. >> i know. >> as christine lagarde said last week. >> she said that last week to you, right? >> yes. it was a curveball. now i know. thank you, sue. >> sure. a busy week in washington between tax reform, a potential government shutdown and the continuing battle over health care. our john harwood with the details. the question is, does 100 days start with a government shutdown? >> i don't think so, sara. we'll see at the end of the week. you know, president trump is right to say that the 100-day standard for judging a presidency is ridiculous. we're not even halfway through his first year in office. but it's a standard that president trump himself has embraced so let's just run through where we are on major initiatives so far. the ones that require action

with congress. not the executive orders or the things to do in foreign policy, unilaterally twochlt things proposed that are in deep trouble. the american health care act. it stalled in the house. they're trying to bring it back but that's not going to happen this week. secondly, his budget has also gotten a cold reaction of democrats and republicans alike. here's some things he has not yet proposed. tax reform. going to put out principles on wednesday but not a detailed plan. they're still working on that. diverges from the house plan. a strange in strategy for the administration. infrastructure, we have not gotten an infrastructure plan and says to generate a trillion dollars in spending and don't know the details of that. finally, one thing as sara alluded to at the beginning of our conversation that must be done this week to extend

government funding. why? the current budget runs out on april 28th and in the interest of the white house and republicans to avoid a shutdown. that means that democrats have more level lanlg in trage in th negotiations and donald trump is not likely to get a big down payment on the border wall he's been asking for, even though democrats say they will invest in technology and some border security. >> we'll see how that all plays out, whether he can make a deal as a dealmaker. ceo, president. john, thank you. markets are in rally mode despite the unknowns. out of washington. celebrating the french election. the dow up 200 and s&p having the best day since march. joining us is craig peters of the prudential total return bond fund and dan szczerbiak uzy i c joining us. greg, you have a big call that people like to cite to buy u.s.

stocks ahead of brexit. no matter which way it went. what are you telling investors now after the french election? >> i think it's a very different time. valuations moved a tremendous amount since the elections here in the u.s., since brexit, and i think what we're seeing is muscle memory of the past risk events. look, i think directionally it makes sense. a big uncertainty. the worst case seemingly averted and i think positive but as we just heard from john harwood, there's a lot coming down the pike and i just think we can't ignore that and a truth of the matter is the u.s. gdp is not changing its trajectory so that was the premise to get bullish here and we haven't seen that change. >> that doesn't sound optimistic, dan. there's another camp saying the first quarter tends to weaken. and then rebounds and we have all this hope of pro growth policy action of washington. do you buy that?

>> you know, i think what we have been saying is there's really been three key drivers of this rally and the third is improving confidence. i guess the issue going forward is that i think we are at the very tail end of the trump input and probably going to get details on tax reform at some point this week. if it really do put out a big pr push around tax reform could get the market excited and send the markets higher but to us i think it inspector genersignals the e next round of heated debates to pay for tax reform and at the same time i think the second derivative on the improving macro indicators is starting to roll over and ultimately growth is a tax and coming in more choppy than the straight line higher we have seen so far so in light of that i think the volatility will pick up and anybody that thinks they missed out on the big trump rally

postelection i think you get a better buying opportunity to buy back at similar levels. >> dan, lots of focus on europe at the beginning of this week. are we focused enough on asia? china's market zrnt a good week last week and there are rumblings this week over chinese leadership's not being happy about trump's action on steel imports. china might retaliate against u.s. financials and tech companies. could that be a problem? >> i think that's one of the things that could add a lot of -- add a lot to the short-term volatilities in the market but not a key driver. the good thing about these geopolitical risks getting through them and past them is to focus back more on the fundamentals and where right now going into the busy week of season. >> it's amazing to see the vix sort of collapse in the face of essentially a veiled threat of

the north koreans to take out an aircraft carrier today. is the market just jaded? >> i just think it's really hard to price it in from a portfolio management standpoint soy think the geopolitical situations particularly around korea is difficult to say i'd do this with my portfolio. i think it's an ever-present, ever-lurking danger and doesn't change the global growth path or earnings. so just this added volatility to the mix but it's really difficult to price in. i think as an investor you're far better not to completely dismiss it. you know? that wouldn't be smart but to focus on the things that matter from a portfolio management perspective and that is the fundamental story. >> let's pin you down on some calls. dan like it is financials. greg, where does the 10-year treasury yield go? >> yeah. so if you go back to after the u.s. election, there was the

belief here in the u.s. globally that u.s. rates would continue to skyrocket higher. never believed that story. i don't think the inflation dynamics have changed. i think inflation peaked in february. the growth dynamics of here in the u.s. is still really quite punk right at 2% and u.s. rate market exactly is most attract i market in terms of developed market rate and put it together, i don't see a scenario of u.s. rates move up in a meaningful fashion so i think where we are right now is the right area. do i have a pinpoint call? no. but i think it's a lower rate environment. >> two before three sounds like? >> you have a better chance of two than to three. >> what does it do to the banks quickly, dan? >> well, i mean, the good thing of buying financials is not totally reliant on the rate outlook. as a house, we think rate gos to 3% by june of this year but even

if we don't get that, there's so much going on for financials that helps them that you don't need to get that rate called actually to come through. if you look at the biggest beneficiaries of tax reform, improving global growth or any of these things are that we expect as a firm i think financials are probably the best position and a main concern for financials is that everybody's already in that trade, our work shows that's not true. fund managers just got to an equal weight and far away from the point where it's everybody's already in that trade. >> yeah. interesting. some of the post election euphoria cooled off. dan, thanks for joining us. greg, nice to see you, as well. >> thanks, guys first it was samsung. now at least one report says a fitbit battery may have randomly caught fire. details on that. >> dow up 190. rick, what are you watching? >> you know, markets seem undecided. do we just give a car that

doesn't run a new paint job and think it's beautiful or is the french post election move in the markets for real? that's what we're going to discuss after the break. rivers. she's a world-class swimmer who's stared down the best in her sport. but for both of them, the most challenging opponent was... pe blood clots in my lung. it was really scary. a dvt in my leg. i had to learn all i could to help protect myself. my doctor and i choose xarelto® xarelto®... to help keep me protected. xarelto® is a latest-generation blood thinner... ...that's proven to treat and reduce the risk of dvt and pe blood clots from happening again. in clinical studies, almost 98% of patients on xarelto® did not experience another dvt or pe. here's how xarelto works. xarelto® works differently. warfarin interferes with at least six blood-clotting factors. xarelto® is selective... ...targeting just one critical factor, interacting with less of your body's natural blood-clotting function. don't stop taking xarelto® without talking to your doctor

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i'm melissa lee. today on "the halftime report," was the french election enough or wait before buying? a key upgrade. the sectors cooled after a big run. will this wall street call

reenergize the regionals? business student's amazing pick to allow him to beat the pros and take the top honors in the sohn investment ideas contest. that's coming at the top of the hour. sara, back over to you. >> all right. we'll see you in 15 minutes. a fitbit customer claimed she suffered burns after she claims her fitness tracker exploded while wearing it. latest setback for a company seeing its shares tumble in the last year. adidi roy is in san francisco with more. what happened? >> good morning, sara. milwaukee resident deanna mitchell said she suffered second-degree burns after the fitbit flex exploded while wearing it. this is a picture taken by mitchell and obtained by nbc news. mitchell said the doctor had to remove melted pieces of plast africa the arm. a company spokeswoman telling us we're extremely concerned about the report regarding the flex 2 and take it very seriously.

adding, fitbit products are designed and produced in accord dance of strict standards and have extensive internal and external testing and is investigating. go back to the third quarter earnings call, james park alluded to manufacturing issues and led to scrapped inventory. back then, he said the root cause of the flex 2, even though it looks like a fairly simple device, it's actually one of the more complex devices that we have designed and developed. and that's due to its incredibly tiny form factor. it's a latest issue to plague f fitbit seeing the shares plunge 67%. it's currently about 7% off the low. earlier this year, the company announcing to cut 6% of the global workforce after reporting disappointing fourth quarter results and last fall the company said it was having manufacturing issues with that

same flex 2 preventing it from meeting demand. we did reach out to analysts about the possible impact of this incident on fitbit and most say they don't expect a long-term impact and one telling us this appears much ado about nothing. back to you guys. >> stock's been through a lot. thank you very much. stocks are pretty steady. dow up 192. let's get to santelli exchange. >> good morning, carl. thank you. everybody's asking the question. you just heard as we're pre-programming here before me, is this going to change, meaning the outcome of the french elections, the ensuing markets moves and put the market back in a mode of three, four, weeks ago? when it was all about equities, mostly upside, very little downside. low volatility, not a lot of vix action going on and interest rates really in a tight zone, 230 to 260. all of that seemed to have changed and many blamed the

reason being the geopolitical side of the equation. now, there's one thing we know for sure that the computer aspects of trading had certain fingerprints that many of us can recognize. it's not that difficult. recogn. indeed, the outcome of the french election, though highly predicted, but still masks an uncertainty due to some of the polling discrepancies of other elections like in the u.s. left many questions. now, as we debate this, remember, it was wednesday, the 12th of april, that ten-year note yields had their first close under 227 after hitting 263 top. which is great resistance. now, let's look at other charts. here's a 24-hour chart of tens. we've left a gap at 227. closed below it. had a number of sessions that couldn't get above it. now, right now, we just violated it. this is so significant.

wasn't long ago, i had a santel santelli exchange. one is which side of 227, the other was 99.17 in the dollar index. 's look at the dollar index chart. yo wha you'll see the fact of the matter is that we are just barely below ha 99.17. if you open up the chart year to date sh it's the bottom, right to the left of where we're trading, so keep it simple. i know we put a new paint job on france and maybe there's good things that will come of this. maybe the fact there was worse outcomes that could occurred, but at the end of the day, i don't know that anything has changed. geo politics versus growth, there's a high problem bability that the treasury side of this equation and the dollar due to its strange signal went unnotice nd the dollar, it will give you a heads up, that other than

bumps in the road, the growth or lack there of has become the dominant driver of rates. back to you. >> thank you, rick santelli. >> straight ahead, why you might have to wait longer than expected for apple's new top end iphone. details, next.

an apple warning coming this morning saying the launch of the

top end iphone which many are calling the iphone 8 is going to be delayed because of component supplied bottlenecks. the ammists say mass production might start in october or november versus august september schedule. we got to take this guys with a grain of salt because if it's true, it makes apple's big phone announcement which we usually expect in september, an even bigger deal, but in essence saying they expect a 7s and an 8, so that would be a slew of new phones and it's not clear what the demand would be fort whole body. >> some of the analysts who have been calling for this are widely watched for product development. they seem to have an in of sorts. >> yeah, they do, but occasionally get things wrong and the iphone business is so big thousannow, the it's possib they've missed something.

>> investors don't seem to mind. the stock is up a percent. this is the best perform ner the dow for 2017. some is on the hype. i feel like this is tax reform. as long as they're still going to do it and it's going to bring the big stimulus, maybe the timing doesn't matter as long as apple keeps the hike going. >> got to make the holiday season though. >> that's true. >> steady market. dow up 196. back after this.

massive rally here and in europe. best day coming off the election. really, the only yellow lights you could build an argument for are crude back below 50 at 49.19 and the ten-year yield off the highs of the day back to 22.64. lot of trades being unwound today. >> the center of the action has to be b the currency market because the euro opens first on sunday. you saw the spike yesterday. just the exit polls started coming in, it is not every day you see a 1.2% move in a currency. ironically, president trump is getting the weaker dollar that he wanted in a meaningful way

today. even though it might not have been b the candidate he wanted. >> and tech, too. apple, again, up almost 1% despite these reports of possible delays and the iphone, which is the whole ball game. >> you missed some earnings last week, but came back for more. thursday night is zboing to be a crazy night for tech. over to headquarter, melissa and the half. welcome to half. top trade this hour is the french election enough to lift stocks to the next leg of this rally? we are up across the board. nasdaq hit ago new all-time high. 17 points within the 6,000 mark. today's trader rs joe, steve, jim, josh, rob, also one of barren's top 100 financial advisers. also here is altu. risk off rally